Govt to roll out targeted fuel subsidy in stages after March 2019, minister says

KUALA LUMPUR, Nov 22 — Domestic Trade and Consumer Affairs Minister Datuk Seri Saifuddin Nasution Ismail said today that the government will begin its targeted fuel subsidy mechanism for lower engine capacity vehicles using RON95 grade fuel in stages.

Saifuddin told the Dewan Rakyat during Question Time that the mechanism will start from the second quarter of 2019 and it is implemented in stages and not everyone will be eligible to receive the subsidy.

“We will implement the targeted subsidy in stages in a trial run to prepare the public to get used to this system because there are some who will qualify and some who won’t.

“We understand that the fuel price is sensitive to the consumer price index,” he said replying to a question from Merbok MP Nor Azrina Surip.

In a supplementary question, Pontian MP Datuk Ahmad Maslan asked about the total subsidy paid by the government before the new system begins and also if the subsidy would be granted to fishermen and those using electrical generators in East Malaysia.

Saifuddin told Ahmad that the country burns 1.2 billion litres of fuel on a monthly basis with 90 per cent preferring RON95.

“Multiply 90 per cent of the 1.2 billion [litres] with the auto price mechanism,” said Saifuddin.

He then added that the Finance Ministry has issued an open tender request for proposal to develop, test, implement and operate the targeted fuel subsidy system.

While tabling Budget 2019, Finance Minister Lim Guan Eng had announced that cars below 1,500cc and motorcycles below 125cc are eligible for a 30 sen subsidy on RON95 petrol.

Eligible car owners can receive up to 100 litres of fuel each month while motorcyclists can receive up to 40 litres a month.

Source: MalayMail